Biocon Biologics Ltd, a subsidiary of Biocon, on Tuesday, announced the completion of the acquisition of the global biosimilars business of its partner Viatris for over $3 billion.
As part of completing the transaction, Biocon has issued compulsorily convertible preference shares (CCPS) in the company for $1 billion, equivalent to an equity stake of at least 12.9 per cent on a fully diluted basis, along with an upfront cash payment of $2 billion to Viatris., said the company.
Earlier this year, both companies had a definitive agreement to acquire Viatris for $3.335 billion, including cash up to $2.335 billion and CCPS valued at $1 billion.
“The completion of the acquisition of Viatris’ global biosimilars business will fast-track our direct entry into several advanced and emerging markets. This acquisition builds on our decade-long partnership and will enable us to realise our vision of addressing global health inequities. This move will strengthen our value proposition to deliver long-term value to Biocon and Biocon Biologics shareholders,” said Kiran Mazumdar-Shaw, Executive Chairperson, Biocon Biologics.
Acquisition benefits
According to Biocon , it will also recognise the combined revenue and associated profits from the acquired products, a step up from the existing profit share arrangement.
“Through this acquisition, the company will have direct commercial capabilities and supporting infrastructure in advanced markets and emerging markets and now has eight commercialised products,” said the company in a release.
Additionally, it will also gain full ownership of its collaboration assets — bTrastuzumab, bPegfilgrastim, bBevacizumab, bGlargine, bAspart, bPertuzumab and bGlargine 300U, as well as Viatris’ rights for the in-licensed immunology products of bAdalimumab and bEtanercept.
Biocon has also acquired Viatris’ rights for bAflibercept, which is used to treat several ophthalmology conditions, according to the company.
“As a significant shareholder in Biocon Biologics, we are committed to ensuring the long-term success of the company and maximising the value of what we are building together — a new world-class, fully integrated biosimilars leader,” said Robert J Coury, executive chairman, Viatris.
The company also announced Rajiv Malik, President of Viatris, as the Board of Directors of Biocon effective from November 29, 2022.